CELEBİ 2021 ANNUAL REPORT

86 Çelebi Ground Handling Inc. 2022 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2022 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 2.1.4 Basis of Consolidation a) The consolidated financial statements include the accounts of the parent company. Çelebi Hava, its Subsidiaries and its Joint ventures (collectively referred to as the “Group”) on the basis set out in sections (b), to (f) below. The financial statements of the companies included in the scope of consolidation have been prepared as of the date of the consolidated financial statements and have been prepared in accordance with Financial Reporting Standards applying uniform accounting policies and presentation. The results of Subsidiaries and Joint ventures are included or excluded from their effective dates of acquisition or disposal respectively. b) The consolidated financial statements include the financial statements of the companies controlled by the Company and its subsidiaries. Control is provided by the Company’s fulfillment of the following conditions: - having power over the invested company/asset; - being open to or entitled to variable returns from the invested company/asset and - ability to use power to have an impact on returns. If a situation or event occurs that may cause any change in at least one of the criteria listed above, the Company reassesses whether it has control over its investment. In cases where the Company does not have majority voting rights on the investee company/asset, it has control power over the investee company/asset, provided that it has sufficient voting rights to direct/manage the activities of the relevant investment. The Company considers all relevant events and circumstances in assessing whether the majority of votes in the relevant investment is sufficient to gain control, including the following: - Comparison of the voting rights of the Company with the voting rights of other shareholders; - Potential voting rights held by the Company and other shareholders; - Rights arising from other contractual agreements and - Other events and conditions that may show whether the Company has the power to manage the relevant activities (including the voting at the previous general assembly meetings) in cases where a decision has to be made. Consolidation of a subsidiary begins when the Company has control over the subsidiary and ends when it loses control. Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date of acquisition to the date of disposal. c) The direct and indirect ownership interests held by the Group in its subsidiaries are provided below, the direct and indirect ownership interest is equal to the proportion of effective interest: Subsidiary Ownership interest (%) 31 December 2022 31 December 2021 CGHH 100,0 100,0 Celebi Delhi Cargo 74,0 74,0 CASI 99,9 99,9 Çelebi Kargo 99,9 99,9 Celebi Cargo 99,9 99,9 KSU 58,7 57,6 Celebi Tanzania 65,0 65,0 Celebi Nas 57,0 57,0 Celebi GH India Private Limited 61,0 61,0 Celebi GS Chennai Private Limited 100,0 100,0 d) The Group categorized the sales and purchase of its subsidiaries’ shares transactions as transactions between group shareholders except parent company. Therefore, for the addition share purchase from other than parent company, the Group records the difference between cost of purchase and book value of asset of subsidiary’s purchased portion under shareholders’ equity. For the share sales to other than parent company, the Group records the income or loss as a result of the difference between sales price and book value of asset of subsidiary’s sold portion under shareholders’ equity.